Fire insurance policy is basically a contract between the buyer and the insurer, where the insurer guarantees to pay for the damage or loss caused to the property of the insurer for a particular time period.
Fire insurance safeguards property against unexpected risks where the value of assets is analyzed according to their market value, considering factors like depreciation and also appreciation in case of inflation. Fire insurance coverage includes mishaps caused due to accidental fire, lightning, implosion or explosion, etc. And also, man-made perils such as bursting of water tanks and pipelines or overflowing, leakages from water sprinkles, and so on
Fire Insurance is an important portfolio of every general insurer. It is equally important for all its consumers ranging from small shopkeepers to mega industrial complexes. Though commercial organizations are exposed to various kinds of pure risks, fire Insurance is the
most preferred insurance cover by all financial institutions as collateral security against finance made by them.
Fire insurance is traditionally transacted not as a Standalone Fire insurance product, but as a package covering certain allied perils including Special Perils like Strikes, Riot, etc. and Act of God (AOG) perils likes Flood, Earthquake, etc. Accordingly, the prevalent fire policy in Indian market is known as Standard Fire and Special Perils Policy.